In the profit increase in the next 7 years with the United States market still in slump, business project difficulties. The job cuts continue in the US and the rate of the job creation of 25 per year is not sufficient to offset job losses in the next 5 years. The other side of the world, Indian outsourcing firms show an opposite trend, the Global Information Technology services providers such as Infosys which provides technical consulting, design and development of the business solutions have been aggressively increasing their workforce. The company reported that in the second quarter it has hired 6,069 people offsetting the 4,521 employees it laud off in the same quarter. With plans of hiring 25,000 people worldwide, the tata consultancy service is also bullishly hiring. The part of the bandwagon is Wipro Technologies. The company is planning to hire about 500 local employees for the new service center.
The manpower India also highlighted the hiring trend by Indian outsourcing firms, the companies are expected to build a talent pool for the upcoming projects as green shoots are visible. Indian Outsourricing Firms Quarter Results UP, the major Indian IT providers including the Infosys and TCS have both reported an increase in their revenues for the quarter. The Tata Consultancy Services reports a net profit increase of 29 percent bringing its quarter revenue from 12.62 to16.24 billion rupees which beat the analyst forecasts. The Indian software outsourcing giant Infosys Technologies also posted an increase of 7.5 percent on its quarterly profit.
Wipro is to announce second quarter results and it is expected to post an increase in its quarter revenue as well given its profitable business with the government and in France. The Wipro Technolgies FRance CEO Christophe Matinoli stated that the company plans to strengthen their business in France to double its revenues and staff in the next 18 months. The M&A Trends, is the technology manufacturers that have been busy acquiring IT and business solutions and services companies to expand their markets and product lines. Enterprise are now moving towards operation and business consolidation. With just one major provider to take care of all their needs that they want to deal. Imaging company Xerox bought Affiliated Computer Services Inc for $6.4 billion.
The dell has agreed to buy Perot Systems Corporation for $3.9 billion, the IBM also expressed its interest in purchasing Wilshire Credit Corporation, Bank of America’s Business Process Outsourcing division. For the same reason that the major firms intend to become a one stop shop, mergers and acquisition is also becoming a hot trend in India. While in the US the trend is to acquire companies within the same industry where technology manufacturers merge with the technology solutions and services providers. In India acquisition is motivated by the desire to tap into another industry particularly utilities, transportation, logistics, aerospace and government. In building expertise in another field, as the competition toughens and the demand for the outsourcing services in the traditional major markets such as the US and Europe, Indian firms have geared more attention to their domestic market.
REFERENCE:
http://www.blog.infinit-o.com/outsourcing-firms-quarter-results-up/
